Question 1

Which of the following would not shift the demand curve for mp3 players?

Accepted Answer

A)  a decrease in the price of mp3 players 
B)  a fad that makes mp3 players more popular among 12-25 year olds 
C)  an increase in the price of digital music downloads, a complement for mp3 players 
D)  a decrease in the price of satellite radio, a substitute for mp3 players 
A)  a decrease in the price of mp3 players 
B)  a fad that makes mp3 players more popular among 12-25 year olds 
C)  an increase in the price of digital music downloads, a complement for mp3 players 
D)  a decrease in the price of satellite radio, a substitute for mp3 players

Question 2

Figure 4-26  
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for ballroom dancing lessons resulting from the introduction of a popular new television show called "Dancing with the Stars"?

Accepted Answer

A)  Point A to Point B 
B)  Point C to Point B 
C)  Point C to Point D 
D)  Point A to Point D 
A)  Point A to Point B 
B)  Point C to Point B 
C)  Point C to Point D 
D)  Point A to Point D

Question 3

The University of Iowa was voted the #1 "party school" in 2013. The University of Iowa is located in Iowa City. At the end of August each year, the market demand for beer in Iowa City

Accepted Answer

A)  decreases. 
B)  increases. 
C)  remains constant, but we observe a movement downward and to the right along the demand curve. 
D)  remains constant, but we observe a movement upward and to the left along the demand curve. 
A)  decreases. 
B)  increases. 
C)  remains constant, but we observe a movement downward and to the right along the demand curve. 
D)  remains constant, but we observe a movement upward and to the left along the demand curve.

Question 4

Kara receives a promotion at work, which increases her income. We would expect Kara's demand for

Accepted Answer

A)  each good she purchases to remain unchanged. 
B)  normal goods to decrease. 
C)  substitute goods to increase. 
D)  inferior goods to decrease. 
A)  each good she purchases to remain unchanged. 
B)  normal goods to decrease. 
C)  substitute goods to increase. 
D)  inferior goods to decrease.

Question 5

If muffins and bagels are substitutes, a higher price for bagels would result in a(n)

Accepted Answer

A)  increase in the demand for bagels. 
B)  decrease in the demand for bagels. 
C)  increase in the demand for muffins. 
D)  decrease in the demand for muffins. 
A)  increase in the demand for bagels. 
B)  decrease in the demand for bagels. 
C)  increase in the demand for muffins. 
D)  decrease in the demand for muffins.

Question 6

You have been asked by your economics professor to graph the market for lumber and then to analyze the change that would occur in equilibrium price as a result of recent forest fires in the west. Your first step would be to

Accepted Answer

A)  decide which direction to shift the curve. 
B)  decide whether the fires affected demand or supply. 
C)  graph the shift to see the effect on equilibrium. 
D)  None of the above is correct. 
A)  decide which direction to shift the curve. 
B)  decide whether the fires affected demand or supply. 
C)  graph the shift to see the effect on equilibrium. 
D)  None of the above is correct.

Question 7

Wheat is the main input in the production of flour. If the price of wheat decreases, then we would expect the

Accepted Answer

A)  demand for flour to increase. 
B)  demand for flour to decrease. 
C)  supply of flour to increase. 
D)  supply of flour to decrease. 
A)  demand for flour to increase. 
B)  demand for flour to decrease. 
C)  supply of flour to increase. 
D)  supply of flour to decrease.

Question 8

A decrease in demand is represented by a

Accepted Answer

A)  movement downward and to the right along a demand curve. 
B)  movement upward and to the left along a demand curve. 
C)  rightward shift of a demand curve. 
D)  leftward shift of a demand curve. 
A)  movement downward and to the right along a demand curve. 
B)  movement upward and to the left along a demand curve. 
C)  rightward shift of a demand curve. 
D)  leftward shift of a demand curve.

Question 9

An increase in the price of ink will shift the supply curve for pens to the left.

Accepted Answer

A) True 
 B)False

Question 10

A decrease in the price of pizza will shift the supply curve for pizza to the left.

Accepted Answer

A) True 
 B)False

Question 11

A movement downward and to the right along a demand curve is called a(n)

Accepted Answer

A)  increase in demand. 
B)  decrease in demand. 
C)  decrease in quantity demanded. 
D)  increase in quantity demanded. 
A)  increase in demand. 
B)  decrease in demand. 
C)  decrease in quantity demanded. 
D)  increase in quantity demanded.

Question 12

Figure 4-12
Firm A Firm B
    
-Refer to Figure 4-12. If these are the only two sellers in the market, then the market quantity supplied at a price of $4 is

Accepted Answer

A)  6 units. 
B)  7 units. 
C)  8 units. 
D)  14 units. 
A)  6 units. 
B)  7 units. 
C)  8 units. 
D)  14 units.

Question 13

What will happen to the equilibrium price and quantity of traditional camera film if traditional cameras become more expensive, digital cameras become cheaper, the cost of the resources needed to manufacture traditional film falls, and more firms decide to manufacture traditional film?

Accepted Answer

A)  Price will fall, and the effect on quantity is ambiguous. 
B)  Price will rise, and the effect on quantity is ambiguous. 
C)  Quantity will fall, and the effect on price is ambiguous. 
D)  Quantity will rise, and the effect on price is ambiguous. 
A)  Price will fall, and the effect on quantity is ambiguous. 
B)  Price will rise, and the effect on quantity is ambiguous. 
C)  Quantity will fall, and the effect on price is ambiguous. 
D)  Quantity will rise, and the effect on price is ambiguous.

Question 14

An increase in the price of blueberries would lead to a(n)

Accepted Answer

A)  increased supply of blueberries. 
B)  a movement up and to the right along the supply curve for blueberries. 
C)  a movement down and to the left along the supply curve for blueberries. 
D)  Both a and b are correct. 
A)  increased supply of blueberries. 
B)  a movement up and to the right along the supply curve for blueberries. 
C)  a movement down and to the left along the supply curve for blueberries. 
D)  Both a and b are correct.

Question 15

If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the left.

Accepted Answer

A) True 
 B)False

Question 16

Scenario 4-1
Suppose the demand schedule in a market can be represented by the equation
         , where   is the quantity demanded and is the price. Also, suppose the supply schedule can be represented by the equation , where is the quantity supplied.
-Refer to Scenario 4-1. Suppose the supply curve shifts to   
What is the new equilibrium price and quantity in this market?

Accepted Answer

The new eq

Question 17

Figure 4-25
The graph below pertains to the supply of paper to colleges and universities.  
-Refer to Figure 4-25. All else equal, an increase in the price of the pulp used in the paper production process would cause a move from

Accepted Answer

A)  x to y. 
B)  y to x. 
C)  SA to Sc. 
D)  SB to SA. 
A)  x to y. 
B)  y to x. 
C)  SA to Sc. 
D)  SB to SA.

Question 18

The demand curve for coffee shifts

Accepted Answer

A)  only when income changes. 
B)  when a determinant of the demand for coffee other than the price of coffee changes. 
C)  when the price of coffee changes. 
D)  Both b and c are correct. 
A)  only when income changes. 
B)  when a determinant of the demand for coffee other than the price of coffee changes. 
C)  when the price of coffee changes. 
D)  Both b and c are correct.

Question 19

The following table contains a demand schedule for a good.   If the law of demand applies to this good, then A could be

Accepted Answer

A)  0. 
B)  100. 
C)  200. 
D)  400. 
A)  0. 
B)  100. 
C)  200. 
D)  400.

Question 20

Lead is an important input in the production of crystal. If the price of lead decreases, then we would expect the supply of

Accepted Answer

A)  crystal to be unaffected. 
B)  crystal to decrease. 
C)  crystal to increase. 
D)  lead to increase. 
A)  crystal to be unaffected. 
B)  crystal to decrease. 
C)  crystal to increase. 
D)  lead to increase.

Exam 4: The Market Forces of Supply and Demand

Which of the following would not shift the demand curve for mp3 players?

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for ballroom dancing lessons resulting from the introduction of a popular new television show called "Dancing with the Stars"?

The University of Iowa was voted the #1 "party school" in 2013. The University of Iowa is located in Iowa City. At the end of August each year, the market demand for beer in Iowa City

Kara receives a promotion at work, which increases her income. We would expect Kara's demand for

If muffins and bagels are substitutes, a higher price for bagels would result in a(n)

You have been asked by your economics professor to graph the market for lumber and then to analyze the change that would occur in equilibrium price as a result of recent forest fires in the west. Your first step would be to

Wheat is the main input in the production of flour. If the price of wheat decreases, then we would expect the

A decrease in demand is represented by a

An increase in the price of ink will shift the supply curve for pens to the left.

A decrease in the price of pizza will shift the supply curve for pizza to the left.

A movement downward and to the right along a demand curve is called a(n)

Figure 4-12 Firm A Firm B -Refer to Figure 4-12. If these are the only two sellers in the market, then the market quantity supplied at a price of $4 is

What will happen to the equilibrium price and quantity of traditional camera film if traditional cameras become more expensive, digital cameras become cheaper, the cost of the resources needed to manufacture traditional film falls, and more firms decide to manufacture traditional film?

An increase in the price of blueberries would lead to a(n)

If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the left.

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, an increase in the price of the pulp used in the paper production process would cause a move from

The demand curve for coffee shifts

The following table contains a demand schedule for a good. If the law of demand applies to this good, then A could be

Lead is an important input in the production of crystal. If the price of lead decreases, then we would expect the supply of

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

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